Disclosure of Compensation Related Costs, Share Based Payments

The 2018 Stock Incentive Plan (the “2018 Plan”), was approved by the Board in June 2018 and approved by the Company's shareholders on September 5, 2018 ("the "2018 Plan Effective Date"). The 2018 Plan replaced the 2009 Stock Incentive Plan (the "2009 Plan") under which no new awards are allowed to be granted as of the 2018 Plan Effective Date. The 2009 Plan previously replaced and superseded the 2000 Stock Option Plan and the Non-Employees Directors’ Stock Option Plan (collectively with the 2009 Plan, the “Prior Plans”).

Awards under the 2018 Plan may take the form of stock options, stock appreciation rights, restricted stock, restricted stock units and other equity-based and equity-related awards. Each share issued pursuant to a stock option and each share with respect to which a stock-settled stock appreciation right is exercised (regardless of the number of shares actually delivered) is counted as one share against the maximum limit under the 2018 Plan, and each share issued pursuant to an award of restricted stock or restricted stock units is counted as two shares against the maximum limit. At October 31, 2018, there were 2,984,032 shares available for grant under the 2018 Plan.

We account for stock-based compensation by estimating the fair value of stock options using the Black Scholes model, and value restricted stock unit awards granted under the Plan using the market price of a share of our common stock on the date of grant. For market based awards we use the "Monte Carlo" approach to estimate the value of the awards, which simulates the prices of the Company’s and each member of the performance peer groups' common stock price at the end of the relevant performance period, taking into account volatility and the specifics surrounding each total shareholder return metric under the relevant plan. We recognize these amounts as an operating expense in our consolidated statements of income ratably over the requisite service period using the straight-line method, as adjusted for certain retirement provisions, and updated estimates of performance based awards. All awards have been granted at no cost to the grantee and/or non-employee member of the Board. Additional information regarding the 2018 Plan is provided in the Company’s 2018 Proxy Statement and Proxy Supplement.

At October 31, 2018, options for 170,381 shares (which expire between 2019 and 2021) were outstanding for the Prior Plans (no stock option awards have been granted under the 2018 Plan). Information concerning the issuance of stock options under the Prior Plans is presented in the following table:



	Number of option shares	Weighted average option exercise price
Outstanding at April 30, 2018	181,673	$	39.48
Granted	—	—
Exercised	11,292	33.55
Forfeited	—	—
Outstanding at October 31, 2018	170,381	$	39.88

At October 31, 2018, all 170,381 outstanding options were vested, and had an aggregate intrinsic value of $14,692 and a weighted average remaining contractual life of 2.19 years. The aggregate intrinsic value for the total of all options exercised during the six months ended October 31, 2018, was $973.

Information concerning the unvested restricted stock units under the 2009 Plan and the 2018 Plan is presented in the following table:




Unvested at April 30, 2018	338,981
Granted	172,232
Vested	(103,300	)
Forfeited	(3,366	)
Performance Award Adjustments	(7,717	)
Unvested at October 31, 2018	396,830

Total compensation costs recorded for the six months ended October 31, 2018 and 2017, respectively, were $12,151 and $12,780 for the stock option, restricted stock, and restricted stock unit awards to employees. As of October 31, 2018, there were no unrecognized compensation costs related to the Plan and Prior Plans for stock options and $12,469 of unrecognized compensation costs related to restricted stock units which are expected to be recognized through fiscal 2022. Certain awards in the 2017 and 2018 long term incentive compensation program grants have performance-based conditions based on the three-year average return on invested capital (ROIC) calculation.